Dee is a serious action figure collector -- and I mean serious. It's important enough to her personally and for her budget that she decides to make an arrangement with another person. This other person (Steven) sells action figures for a living. Dee and Steven decide to use a derivatives transaction to hedge risk. Dee wants the price of action figures to be if the price of action figures goes particularly low, marking to market will note that has given up some value. high; Dee low: Dee fow: Steven high; Steven.